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0580/42 Oct/Nov 2025, Question 14: Profit and Loss

Cambridge IGCSE Mathematics 0580 · Paper 42 (Extended) · Calculator · 8 marks

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The question, in short

Carlos invests $24 000 at 3.2% yearly compound interest for 4 years, sells a painting for $40 870 at 34% profit, and a $32 500 car loses 23% yearly; find investment value, profit, and value formula.

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Part (a) · 2 marks

Calculate the value of $24 000 invested at 3.2% per year compound interest after 4 years.

  1. 1Value = 24 000 × (1 + 3.2/100)⁴
  2. 2= 24 000 × 1.032⁴ = 27 222.6…
  3. 3≈ $27 223

Answer27 223

Part (b) · 3 marks

Given selling price $40 870 and 34% profit, calculate the profit amount from buying price $x.

  1. 11.34x = 40 870
  2. 2x = 40 870 ÷ 1.34 = 30 500
  3. 3Profit = 40 870 − 30 500 = $10 370

Answer10 370

Part (c) · 3 marks

For a $32 500 car decreasing 23% yearly, find formula for value V after n years.

  1. 1Each year the value is multiplied by 1 − 0.23 = 0.77
  2. 2V = 32 500 × 0.77ⁿ

AnswerV = 32 500 × 0.77ⁿ

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